Sweepstakes? Great List Builder, But…

Your marketing is only as good as your audience. In other words, the better your list, the better your marketing.

But “better” is a subjective definition of a list. Does better mean quantity or quality?

Quantity is for businesses that sell products/services for the masses. These businesses generally offer a commoditized and price sensitive product in a market with many competitors. For them, a “better” list means a longer list of prospects. Think soft drinks or pizzas.

Quality is for businesses that sell products/services for a niche market. These businesses usually sell a unique and differentiated product in a market with only a few direct competitors. For them, a “better” list means more qualified prospects. Think luxury cars or swimming pools.

Small businesses should fall into the latter category where quality of a list is paramount to quantity. A small business with a strong Marketing DNA will know that a targeted niche is more attractive than a mass list. More qualified prospects is always better than more prospects.

So should a small business build its list with a sweepstakes?

A sweepstakes can be a great way to build a list. Give away your product for free for those that sign up on your website, at a conference or in your store. If you gather these names and add them to your database, you are growing your list.

But the names you gather aren’t necessarily the most qualified. They are only people that have signed up for your contest. This doesn’t make them high-quality leads. In fact, they might just be freeloaders looking for a handout that would never purchase from you in the first place.

Sweepstakes responders are a skewed list towards those interested in the free prize.

You can still do a lot with your sweepstakes. If you are considering a contest to build your list, be sure that your procedure gathers actionable data. Think of ways to further qualify leads. For example, ask when the prospect would be in the market for your product or service. Or invite entrants to subscribe to your e-newsletter. Maybe include a multiple choice question about the best way to follow up.

Leads are great, but qualified leads are better. Move your business to the next level with quality not quantity.

Marketing is a Steak

If marketing is a steak, it needs to be either rare or well done.

The well done part goes without saying: market your business well and your brand will grow. Marketing well means understanding your Marketing DNA, following a S.M.A.R.T. plan and repeating your message consistently.

The rare part is a bit harder to grasp but equally as effective. Being rare means being unique and special. Marketing that cuts through clutter is new and different. It creates buzz and conversations. Rare marketing fosters cruise control marketing.

If your marketing is neither rare nor well done it's just...um...medium.

Medium is the worst kind of marketing. It's bland, commoditized and fails to create action.

So move your business to the next level with rare marketing or marketing that is well done. Don't settle for anything medium.

Marketing DNA Haiku

Differentiate.

Target a narrow market.

Add lots of value.

For more on Marketing DNA and how to move your business to the next level, see past blog entries here.

3 Things a Recruiter Can Teach You About Marketing

A good recruiter is more than an expert in Human Resources. A good recruiter is also an expert marketer.

Consider three strategies a good recruiter implements and how they can be applied to successful small business marketing:

1) Extremely Targeted Search: a recruiter has one person in mind to fill a certain position. In order to find that one person, the recruiter establishes a very defined profile: experience, performance, salary, skills, etc. In creating a clear profile, the recruiter narrows the talent pool. Instead of trying to find a needle in a haystack, a recruiter cleans out most of the hay to make the search easier.

Same goes for marketing: narrow your focus. Target a small niche. Recruit only the most qualified customers with your marketing. Unless you're Starbuck's or McDonald's, you don't want to attract the masses. Like the recruiter, simplify your efforts with a clear and defined profile of your target market. It will make your job much easier.

2) Quality is Better Than Quantity: a targeted search will yield more qualified candidates for a recruiter. Less is more for a recruiter: less candidates with more qualifications is always better than more candidates with less qualifications. A recruiter finds less candidates with more qualifications with one simple, clear and direct message. More important, a good recruiter will broadcast his or her search in fewer channels, not more. A clear message in one or two channels will cut down on the quantity and yield more quality.

Same goes for marketing. Too many businesses spin their wheels trying to broadcast a variety of messages across various channels. In this case, quantity will bury your marketing efforts. Instead, focus on the quality of the marketing. Think about the specific market you are targeting and dedicate your energy to one or two key messages to communicate to that market. Find one or two channels for that market and extract quality from fewer channels.

3) Be Romantic: the ultimate test of a recruiter is if he or she can land top talent. This requires ample wooing. Sure, a recruiter needs to paint a real picture of the job, but in order to compete for the best, a recruiter must go above and beyond what everyone else is doing to ensure that his or her company will get the talent they need.

This is no different than marketing. Romance your prospects. Woo you customers. Go above and beyond what everyone else is doing and you will convert leads into paying customers in no time.

In all, recruiting is more like marketing than you might expect. Move your business to the next level by applying some key recruiting strategies to your Marketing DNA.

How Does a Small Business Get Away With This?

Recently I called a local small business with a question about my account. I was told that the person in charge of billing was out until the next day and that it was best if I call back then.

I offered to leave my message on the person's voicemail to which the receptionist flatly told me "we don't use voicemail."

As a consultant to small businesses, it was hard for me to resist the urge to find out why.

"Why is that?" I asked curiously.

"We find it impersonal. And we just don't use it."

Her frankness floored me. I just couldn't fathom how a small business in today's environment could be so shortsighted.

I understand the fact that voicemails can be impersonal. Sure, we all would rather talk to a live person. But if the appropriate person is not available, why make things more difficult for your customer? Now the burden is on me to chase down the person I need.

Things must be going swimmingly at this business if they expect customers to chase them. What a luxury!

I couldn't hide my disappointment with the receptionist. I wasn't rude, but I pressed for more information.

"You really don't use voicemail?" I asked.

"No, we don't." the receptionist stated.

"Well, you may not want to use it, but your customers might." I responded.

I broke the awkward pause with, "so thanks for your help. I will try back tomorrow."

I hung up incredulous. What business can really afford to make it more difficult for their customers?

Business basics: make it easy to do business with you. This maybe one of the easiest and most successful ways to add value and it should be part of your Marketing DNA.

Move your business to the next level by ensuring your customers don't have to chase you.

Then again, if your business can afford to make life more difficult for your customers, maybe the next level is not for you.

Best Marketing ROI: Passive Marketing

Passive income is income derived from an activity in which you do not materially participate. Collecting rent or earning dividends are examples of passive income.

Active income, on the other hand, is income earned with blood, sweat and tears.

Robert Kiyosaki popularizes the concept of passive income in his Rich Dad/Poor Dad Series when he illustrates that the key to personal wealth building is to leverage passive income. Active income, Kiyosaki states, is the trap to keep you in the rat race.

Let’s apply this same concept to marketing.

Passive marketing is marketing derived from an activity in which you do not materially participate. Word-of-mouth, referrals, recommendations and repeat business are all examples of passive marketing.

Active marketing, on the other hand, is marketing earned with blood, sweat and tears.

Think about your business. Do you generate more revenue from active marketing or passive marketing? Are you successfully leveraging passive marketing? How can you generate more passive marketing?

There’s no easy answer and Kiyosaki would probably agree: you need a certain amount of activity to generate the return on the passivity. It takes lots of blood, sweat and tears to reach the point at which your income chases you instead of you chasing it.

But if you start to think in terms of passive marketing, you start to see its power.

Move your business to the next level by focusing on how to achieve more passive marketing. Concentrate your Marketing DNA on generating repeat business, testimonials, referrals, recommendations, customer retention and word-of-mouth.

After all, what someone says about your brand is always more powerful than what you say.

Absolute #1 Way to Increase Brand Awareness

Brand awareness is easily attained. Nowadays, it doesn't take much to get your name out there.

Just ask the parents of the Balloon Boy.

But Balloon Boy's time has come and gone. The original buzz around the controversy has lost its momentum. We will see some follow up news about this family because their actions were so remarkable, but interest will wane because people feel duped.

Marketing via controversy is not a long term strategy.

The best way to increase brand awareness over time is to increasingly supply value. Value is the fuel for the brand awareness machine.

Add value--per your Marketing DNA--and move your business to the next level.

Sure, you can increase brand awareness with a publicity stunt, a controversial idea or some other audience-grabbing event. But if there is no substance beyond the initial exploit, then awareness will fade faster than it was built.

The graph is an illustration that strong brand awareness is built by increasing levels of value. Per the small curvature, you can reduce value and still increase brand awareness. But this is just a blip, just like the Balloon Boy.

In order to build a strong brand, you need to increasingly provide value without any blips.

For most small businesses, brand awareness depends on referrals, recommendations and repeat business. Value is the key to unlock the flood gates of referrals, recommendations and repeat business.

So host a tasting event, have a customer appreciation week, give informative (i.e. not salesy) presentations, offer an add-on service for free or otherwise create some additional value for your product or service.

Adding value will build your brand and move your business to the next level.

It's Not What You Do; It's What You Do With It

Marketing is not what you do. It’s what you do with it.

Time after time I have seen small businesses fail in their marketing efforts because they simply “do” marketing and they don’t “do anything with it.”

Successful Marketing DNA requires more than just marketing alone. Successful Marketing DNA requires taking that next step and doing something with your marketing.

As you plan your next marketing initiative, think beyond the marketing and determine what you are going to do with it. Here are some ideas to get you started:

What you do: publish a print ad

What you do with it:
• Lead generation: “Call for more details”
• Invite participation: “Come to our FREE tasting”
• Encourage response: “Mention this ad and take 10% off your next order”

What you do: e-mail marketing

What you do with it:
• Send out informative topics to encourage readers to always open your content
• Provide valuable information in each email so that responders forward your email to others
• Build a community around your database by mentioning and referring your contacts to other businesses

What you do: build a Facebook page

What you do with it:
• Build a following by providing links and information that directly benefits your fans
• Engage in discussions and dialogue to encourage participation amongst fans

What you do: mail a postcard

What you do with it:
• Commit to at least four direct mail touch points with the same audience: one postcard does nothing
• Incent response with a simple yet compelling offer
• Test two versions of the same card and track responses to determine optimal messages

What you do: sponsor an event

What you do with it:
• Have enough free “takeaways” for everyone: examples include pencils, key chains, product samples, coupons, etc.
• Make your presence known with huge signage and other display items that will make your name standout
• Donate products or services to event coordinators to use in a raffle or something else

I could certainly go on, but I think the idea is clear.

It’s not about doing marketing. It’s about doing something with your marketing. If you want to move your business to the next level, then be sure you do something more with your marketing.

"Everybody Gets Tired When Nobody Listens"

A direct quote from my daughter: "Everybody gets tired when nobody listens."

My daughter is four. She made this enlightened statement between giggling on the swings and hanging from the monkey bars.

While I am certainly biased in thinking my daughter is brilliant, there is no doubt that she speaks the truth. Listening is perhaps the most important skill in both business and in life.

The application of consistent listening serves tremendous marketing benefit. From customer service to employee interactions, a small business owner must be able to truly open her ears and probe for more information.

I previously recommended that a business owner must continually question their customer comments to dig for more information. In order to extract the most information, it is necessary to put aside egos, open up the ears and let the other party do the talking.

This life skill will move your business to the next level. You will find that customers will give you great information, employees will feel empowered and the competition will struggle to match your level of service.

It is tiring when nobody listens. Think how much energy is sapped with the simple act of seeking attention.

Do yourself, your employees and your customers a favor by energizing them with your listening.

What I Should Have Learned in B-School

Check my transcript: I took all the right classes.

Accounting, Finance, Operations, Marketing (lots of Marketing), Economics, Statistics...you name the B-School course, I took it. I even did an "Advanced Topics in Finance" class since I thought number crunching was what I needed to learn.

However, despite all my efforts, I failed to learn perhaps the most important lesson in business: your net worth is directly attributable to your network.

Only in the years since business school have I been able to fully comprehend the importance of your network.

I will never regret my time in business school. It was beneficial beyond measure and it propelled me into a career that I love. I was challenged by both professors and colleagues. I became a smarter and more well-rounded professional. And I recommend continued education to anyone and everyone.

Nevertheless, as I look back, I think I could have benefitted from a Networking 101 class. I can envision the modules: Honing Your Elevator Pitch, Public Speaking, Managing Your Rolodex, Follow Up Techniques and Giving to Get.

I should have learned these topics in b-school, but maybe these lessons are best taught outside of the classroom. Maybe the school of hard knocks is the best way to learn how to network.

After all, it's not the economy, stupid. It's your network.

6 Levels of the Sales Funnel

Good marketers know that steering a potential customer towards a purchase takes considerable effort. Few purchase decisions happen after just one contact. In fact, it may take 10-12 marketing touchpoints to convert someone into a customer.

For this reason, it is crucial to understand the Sales Funnel. Perhaps just as important as the Buyer Decision-Making Model, the Sales Funnel demonstrates that a concerted effort is required to create a customer.

Since much has been documented about the Sales Funnel, I don't feel the need to go into great detail. However, it is important to understand Sales Funnel basics. Sales Funnel basics boils down to the six levels of the funnel outlined here:

1) Strangers: these are people that have no idea about your business. They represent the mass of potential Contacts that have no awareness and thus float around your Sales Funnel. The best Strangers are identified as your niche, or your target market.

2) Contacts: once awareness is established, Strangers become Contacts. They dip their toe in the funnel. You may know very little about them and they may know very little about you, but at least there is some awareness.

3) Leads: a Contact becomes a Lead once there is some exchange of contact information. The most successful way to convert a Contact into a Lead is via permission marketing. Permission marketing is when a Contact gives you permission to contact them. This can take many forms like web sign ups, emails or even personal calls or visits. The basic concept is that a Contact gives your their contact information and they seek some type of follow up.

4) Prospects: once a Lead has been contacted, they should be qualified. Qualified essentially means that they are either moving closer to the purchase or moving away from a purchase. Prospects are those that are moving closer to the purchase.

5) Customers: there are many ways to think about Customers. My tried and true definition of a Customer is one that pays for a product or service. Look at your database: the people that are paying you are your Customers. Treat Customers as gold because the ultimate goal of the Sales Funnel is to convert Strangers into Customers.

6) Advocates: Advocates are those that recommend your business to others. They might be the most important component to your Sales Funnel because they will fill your Sales Funnel for you. Most often Advocates are satisified Customers, but Advocates can come from just about any level of your Sales Funnel.

In all, it is important to recognize that your entire Sales Funnel requires investment, attention and much care. Successful businesses will invest in each and every level. Tending to one level at the expense of another is rarely a good idea. I've seen many businesses focus on Prospects or Customers alone and forget to fill the Sales Funnel with Contacts. Or vice versa: a business fills their funnel with Contacts but fails to convert them into Leads, Prospects or Customers. Either approach is a recipe for failure.

Focus on all levels of the Sales Funnel. Fill your funnel AND move people through your funnel at the same time.

I reommend the 80/20 Rule here: spend 80% of your efforts moving your Contacts through the Sales Funnel and spend 20% of your time filling your funnel with new Contacts. This formula should be part of your Marketing DNA and successful implementation will move your business to the next level.

6 Steps to Successful Event Marketing

Event marketing is extremely labor intensive. But if done right way, it can fill your sales funnel with highly qualified leads and prospects.

The key to event marketing, much like any marketing, is preparation. In fact, successful event marketing is directly due to the upfront work.

The following are some suggested steps to successful event marketing. You’ll see that most of the work comes before the actual event:

1) Pick the Right Event: take some time to really understand the event, the audience and the promoters. Due diligence is critical because you want to showcase your product and service to the right people. More importantly, you want to be sure the event is promoted well. Trust me. There is nothing worse than setting up your booth at an event only to watch the grass grow. A simple way to perform your due diligence is to call the vendors that attended previously and ask them about their experiences.

2) Establish a Specific Objective: set your S.M.A.R.T. (strategic, measurable, achievable, realistic, time-bound) goal for what you want to accomplish. Think of your objective as two-fold: 1) what do you want your audience to say about your business and 2) what do you want to capture from your audience. Setting up this specific objective will directly determine how you approach the event, what you bring and how you expect to interact with attendees.

3) Negotiate the Terms: part of picking the right event comes down to getting the right terms. Most event promoters will accept any vendor willing to pay the fee. But you shouldn’t see yourself as any vendor. Besides, if you pick the wrong event and get no traffic, then your time and money are worthless. Work with the promoter to help you achieve your specific objective. There are a lot of ways to accomplish this: get a good booth location, base your event fee on the amount of traffic to your booth or get your business promoted in the event program or other avenues. Terms can make or break an event.

4) Keep it Simple: too often business owners want to post several signs, have several give aways and have time to meet with prospects. You need a hook to bring people in, but keep it simple. Think about your specific objective and work towards accomplishing that one objective. Everything else is extraneous.

5) Give, Give, Give: to really create buzz, give away your store. Literally. Sure, selling is important. But when you have the chance to target hundreds of prospects, give them a reason to remember you. The best way to do this is to give away what your business values most, namely your product or your service. This can be done without breaking the bank. Think of ways to give value for free which would then entice attendees to buy more. A presentation, for example, is a great way to do this. Give away invitations to a special presentation in which you reveal industry secrets. Once you have them in a presentation, then you can show them you’re an expert which will lead to more sales.

6) Follow Up: succesful event marketing is contingent upon follow up. Procrastinate on follow up and you'll waste time and money. Once you put the event date on your calendar, put the event follow up shortly after. Put it in your calendar now and you will do it. Don’t save it for later.

There is a lot involved in successful event marketing. So break it down to the basics, follow the above steps and move your business to the next level.

Memo To Those Marketing Via Controversy

If you use controversy to market your business, your business model is not sustainable.

Especially via social media.

We've seen you're tactics. Marketing via contoversy can take a number of forms: a tweet that incites anger, a derogatory blog against a respected practice, an email that gets under your skin or even a scam claiming everything else is a scam. These are just some examples.

For these type of marketing initiatives, one thing is clear: while controversy may increase short term awareness, it will ultimately prohibit long term business success.

In today's marketplace, the Long Tail is more important than the quick sale.

Add value. This will move your business to the next level and should be a part of your Marketing DNA.

The 3 Marketing Assets

In order to move your business to the next level, make sure that you leverage all three of your marketing assets.

Assets, by definition, generate revenue.

There are three marketing assets: product, service and brand.

If your business does not generate revenue from all three assets, it's time to create another revenue stream.

Service: if you primarily sell a service, find complimentary products to sell along with your service. They certainly don't have to be your own but you should find ones you feel comfortable recommending. Look around for a good wholesaler or distributor. You might find a very profitable situation.

Product: if you primarily sell a product, develop an accompanying service. Maintenance, warranties or insurance plans are popular among the big retailers. Info products are an excellent option for smaller businesses. Seminars and presentations add value and can also generate leads.

Brand: if you have both a product and service, think about how to create revenue from your brand. Licensing your product or service is the best way to do this. If licensing is out of the question, get creative. Small businesses might leverage their brand in exchange for leads or goodwill as opposed to revenue. This may not help the bottom line immediately, but a warm lead can turn into revenue.

It certainly takes some hard work to leverage all three marketing assets. Your Marketing DNA will be tested.

Nevertheless, move your business to the next level only when all three marketing assets are producing the highest return.

Question Your Customer Comments

Dare I suggest that you question what your customers say?

Absolutely.

Many small businesses utilize surveys, suggestion boxes, comment cards or other mechanisms to solicit customer feedback. These can be excellent forms to gather input, but too many business owners misinterpret the data.

First of all, there are rarely enough data to make a well-informed decision. Without significant sample sizes, a business owner might react to one comment that may not represent the whole.

Secondly, the interaction represents one snapshot of time. Just what one person was thinking at that one time.

Third, the population that is inclined to fill out a survey is either extremely satisfied or extremely dissatisfied. While their feedback can be useful, often times their comments do not offer constructive advice: satisfied people like business as usual and dissatisfied people simply need to vent.

Thus, the best way for a small business to handle customer feedback is to question it.

Engage in dialogue with your customers. Then listen.

If you have a feedback mechanism, like a comment card or a survey, provide a means to follow up so you can dig into the comments.

If you receive a compliment, find out more. What specifically was good? Why was it so good? Do others share your opinion? And the best question of all, why would you recommend our business to others?

If you receive a negative comment, dig for more information. Set your ego aside and ask deep, probing questions. What was so negative? Why was it negative? How could we make it better?

In either situation, the 5 Whys are a terrific way to really question customer comments. Asking why 5 times for every interaction will produce actionable results.

To take your feedback to the next level, utilize social media and other on-line platforms to engage with customers and encourage dialogue. Social media can enable a larger sample size, a more varied perspective of time and a broader opinion base than a survey.

Gather your own customer panel via ratings on websites, fan pages on Facebook or tweets with a particular hash tag. Use the question and answer pages on LinkedIn. You will truly converse with your customer base and you can continually demonstrate the value you provide. Best of all, social media is free.

Just make sure you question every and all comments. Deep questions and lots of listening.

This act alone will move your business to the next level and it should be part of your Marketing DNA.

3 Currencies of Marketing

"Slash your marketing budget" is one of my favorite recommendations to small business owners.

There are many ways to market your business that don't require significant financial resources. Here are four no cost marketing initiatives.

The key to these initiatives is the understanding that successful marketing is funded by three separate currencies: money, time and energy.

Money is obvious. It takes money to make money. It takes money to hire a marketing consultant, advertise and otherwise get your name out there.

But money alone does not make marketing successful. In fact, some of the most powerful messaging can be created without spending a lot of money.

For this reason, I recommend small business owners consider investing time and energy into their marketing. Allocating time and energy to a marketing challenge often times results in greater return on investment than money.

Take time, for example. I generally recommend that businesses dedicate at least 10% of all revenue to marketing initiatives. What if business owners spent 10% of their time on marketing? That's really only one hour a day for most.

A lot can be accomplished in one hour: post a blog, give a presentation, cold call, network, optimize other marketing communication or strategically plan your Marketing DNA.

But don't look at time as simply punching the marketing clock. Energy is as valuable as time when it comes to marketing investments. So dedicate energy as well as time.

Investing your energy will allow you to think through your marketing challenges and it will ensure that the time you allocate is well spent.

One great way to invest energy is to generate referrals for other businesses. The Golden Chain of Referrals should start with you, and this strategy generally requires much energy to know the businesses and know to whom to refer their services.

In all, marketing doesn't need to cost money. Time and energy are equally valuable currencies to move your business to the next level.

Stay Longer, Buy More

Shoppers that stay in your store longer will buy more. Nothing revolutionary here. It's one of the main conclusions and recommendations from Paco Underhill and his excellent book, Why We Buy: The Science of Shopping.

Mr. Underhill suggests that retail shops and stores invite their customers to stay longer. His ideas include: making the environment pleasant, placing children's items low so they can interact with the products and providing seating like an area for husbands to so their wives can browse longer.

Kind of like the beer commercial where the guys set up the tv in between the clothes racks so they can catch the game while the wife shops.

But Mr. Underhill's recommendations apply to the online world as well: keep your browsers and shoppers on your site or your blog for longer and they will buy more.

How do you do it?

First, provide valuable content. The more valuable your content on your site, the more time people will spend with your information and the more they will soak up your brand.

Second, if you have a blog, make sure that the links you add to your posts open a new window. It takes a bit of HTML coding, but it is not too difficult to do. For Blogger, I go to the "Edit HTML" tab and I add the following code to the end of each link: "target=_New". This ensures that a new browser window opens from a link and the reader won't get bumped off my blog, thus absorbing more of "me" and my message(s).

Third, get interactive. Browsers and consumers that can interact with your site by posting comments or providing ratings will engage your readers and have them spend more time with you.

Finally, give browsers a reason to come back or give them a reason to get more information from you. This means you will need to update your content frequently. You will also need to provide ways for prospects to subscribe to your newsletter and feeds or a widget so they can become a follower.

Mr. Underhill studied the off line world, but his recommendations apply to both on and off line: if prospects stay longer, they will buy more. And if your prospects spend more time with you and your message, you will move your business to the next level.

Please Tell Me Someone Already Thought of This!

Question for grocery stores out there: do you have "locally grown" produce section?

Most grocers carry an "organic" section that attract a certain niche of produce buyers. Fortunately or unfortunately--depending on which side of the aisle you stand--the anchor point for organic produce is a bit higher than non-organic produce. It seems to cater to a clientele with the ability to spend more.

But a "local" section could present a number of profitable and agreeable benefits.

First of all, it could be cheaper than the other options. If produce doesn't have to travel thousands of miles, the cost savings can be passed onto the customer. Savings sells in a grocery store.

Second of all, it makes wonderful environmental sense.

Most of all, a "local" produce section has the makings for a perfect Marketing DNA. It's differentiated so it will attract new and different customers. It serves an ideal niche of locals. And it adds value to the consumer, the growers and ultimately the bottom line of the grocer.

Sure there are probably some kinks to work out. Produce would not be as predictable as local growing cycles. Space is probably a concern as well since grocers generally occupy every square inch of their store. And maybe the displays would take some tweaking to make sure the message is clear.

But these seem to be easily-solved issues if the name of the game is to add value.

In fact, it seems so obvious to me that some grocer's out there must be doing it. And I'm not talking about those grocers that already have a strong organic following, like Whole Foods. I'm talking about bargain grocers like Grocery Outlet or Food Maxx. Or even big box stores with grocery departments like Wal-Mart and Target.

Are grocers already doing it? Please tell me somebody already thought of this!

Sales Down 30%, Now What? 4 Implementable Actions

Despite rosy claims that the recession is over, many small businesses continue to feel the pinch.

With the end of 2009 in sight, many business owners ponder what's to come in 2010 and beyond. If sales revenues are down, what can a business do to stay afloat? How long can a business sustain less and less customer spending?

Believe it or not, many businesses are growing during these doom and gloom times. The ones that are growing are capturing marketing share from their competitors that are shrinking or downright collapsing. And once the recession subsides, the survivors will thrive.

So how do you survive? How do you stem the huge dips in sales revenue and live to see another day? There are a number of ways, but let's focus on four key actions that you can implement today:

1) External Needs Analysis: get outside of your small business box and ask around. Ask your customers, your prospects and leads: what do you need most? Ask your competitors or collaborators what customers are seeking and needing. Only those businesses that can provide solutions based on needs will attract customers and followers. Find and identify the biggest needs; that's where the spending is happening.

2) Evaluate Your Positioning: once you have a sense on the needs in the marketplace, reevaluate your comparative advantage, or Unique Selling Proposition. This is the statement that summarizes the value you provide in a brief and succinct manner. Ensure that you are positioned to serve the needs you discovered in Step #1. If your positioning doesn't address the needs of the marketplace, it might be time to rethink your business. Also ensure that your target market understands your USP so they can differentiate what you provide from others.

3) Internal Needs Analysis: now that you know what the needs of your market are and you know how to position yourself to address those needs, look inside your company. Determine if you have the resources to get your message to those that most need your services. Resources doesn't only mean money. Remember, the best marketing takes money, time and energy. If you don't have the money, make sure you have the time and energy. Only those businesses with the internal resources to to address market needs will continue to exist.

4) Add Value: if you read this blog frequently, this is a common theme. Recall that value is the relationship between perceived benefit and price. Value is the way you monetize your business and it is a key component to your Marketing DNA. Continue to add value to your customers--even if it means sacraficing a little profit--and you will build your followers. If you can be there for your customers during these tough times, guess who will be there for you when those same customers need a service like yours?

There are other actions to stem the tide--like slashing your marketing budget--but the key is to think long term. Short term actions put out fires, but do not prepare you for the long haul.

To move your business to the next level, think long term. Business may be down 30% now, but if you can stem the tide, you too can have a growing business that captures market share from your shrinking or collapsing competitors.

Social Media Impact Predicted 47 Years Ago

As both consumers and advertisers continue to explore the waters of social media, one thing is clear: the impact of social media was already predicted 47 years ago.

Try this on for size:

"...[I]f a new technology extends one or more of our senses outside us into the social world, then new ratios among all of our senses will occur in that particular culture. It is comparable to what happens when a new note is added to a melody. And when the sense ratios alter in any culture then what had appeared lucid before may suddenly become opaque, and what had been vague or opaque will become translucent.”

This is an excerpt from The Gutenberg Galaxy written by Marshall McLuhan….in 1962.

That’s right. 1962. Even more interesting, McLuhan made this statement in reference to the printing press. Yet his comments remain applicable today.

McLuhan theorized that the technology of communication has a greater impact than the actual message, and thus the technology shapes how we communicate, interact and organize. McLuhan is credited with originating the concept “the medium is the message.” He cited numerous development--from the creation of the alphabet to the invention of electronic media--as historic milestones that have shaped our civilization.

As the social media craze reaches more and more corners of the earth, he seems to be more prescient than ever. Social media is shaping the next generation of the communication landscape.

Social media has altered our sense ratios.

What's becoming clearer is our sense of time and value. The immediacy of social media has allowed consumers and respond and react to marketing messages in real time. And since word-of-mouth is so powerful within the social media channels, the content and the message must provide value for anyone to truly respond.

However, what's becoming less clear is our sense of reach and scale. Social media is not for everyone. Despite crazy growth rates for Twitter, Facebook and YouTube, some consumers have yet to plug in. Globally speaking, there are millions that don't even have access to the technology.

Given this clarity and opaqueness, it stands to reason why the social media movers and shakers are professing that the most successful social media messages are genuine, loving, positive and collaborative.

Andy Sernovitz, Guy Kawasaki and Chris Brogan among others all agree that the best way to utilize social media is to share valuable content. They claim that sharing good content--whether it be your own or attributed to another--is the best way to create a following.

Call it the karmic circle of social media: put out good stuff and get that in return.

In light of McLuhan's statement, there is still much to learn about social media particularly from a small business marketing standpoint. We see that companies like Gap are replacing big budget TV ads with Facebook campaigns. It's a risk, but one that Gap is willing to take. We've also seen instances like Johnson and Johnson who leveraged YouTube. Their risk, unfortunately, turned out poorly.

So yes, we are reaching clarity on some levels for social media, but other levels are still opaque.

For that reason, I recommend we all subscribe to the karmic cirle of social media. Let's put out good things and share useful and interesting information. This is truly the way to create and add value, which is a key component to your Marketing DNA.

In fact, it may be the only way to move your business the the next level.